Finance

Credit Agricole trims Russia exposure, beats expectations on investment bank strength


Credit Agricole said on 4 August that profit and revenue beat expectations in the second quarter in its capital markets and investment banking business, despite macroeconomic uncertainties.

Net profit at the French bank came to €1.98bn in the three months to the end of June, ticking up on the €1.97bn of the same period last year.

Revenue rose 8.8% to €6.33bn, amid strong activity in capital markets and investment banking, where revenue rose 29% excluding foreign exchange impact, and at its wealth management operations.

The results beat expectations of €1.26bn for net profit and €5.64bn for revenue, according to analysts’ consensus provided by FactSet.

Credit Agricole said it reduced its exposure to Russia by around €400m between March and June, though it didn’t add extra provisions to the €584m it set aside for the impact of the war in Ukraine in the first quarter.

Cost of risk, however, was €203m in the period, around 20% down on the second quarter of 2021.

The Paris-based company also said it had robust activity at its home-loans business and consumer-finance operations.

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Underlying revenue was also helped by the acquisition of Italian bank Creval and asset manager Lyxor, it said, both of which were completed in 2021.

Net inflows at its asset-management business came to €1.8bn, despite what the company called unfavourable market conditions.

“In an opaque and uncertain environment, the group continues to grow steadily, thanks to its universal customer-focused banking model,” chief executive Philippe Brassac said.

The lender added it had taken on one million new customers in the year to in France, Italy and Poland.

Write to Ed Frankl at [email protected]

This article was published by Dow Jones Newswires, a fellow Dow Jones Group service

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